OCBC Q3 profit rises 3% to S$2.04 billion, slightly above expectations

[SINGAPORE] OCBC’s net profit for its third quarter rose 3 per cent as strong performance across its wealth management and wholesale banking businesses offset lower contributions from insurance arm Great Eastern, it said on Friday (Nov 6).

Net profit for the three months ended Sep 30, 2026, stood at S$2.04 billion, compared with S$1.98 billion in the year-ago period.

The earnings came in slightly above the S$2 billion consensus forecast in a Bloomberg survey of seven analysts.

Net interest income for the quarter rose 4 per cent to S$2.31 billion, supported by growth in average assets, from an increase in both customer loans and high-quality non-commercial assets.

Net interest margin fell 18 basis points (bps) to 1.66 per cent for Q3 FY2026, from 1.84 per cent in the previous corresponding period, amid a lower interest-rate environment.

Non-interest income declined 10 per cent to S$1.42 billion, mainly reflecting weaker investment performance by Great Eastern.

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The bank’s non-performing loans (NPL) ratio was 0.8 per cent, down from 0.9 per cent in the same period a year ago.

OCBC also raised its financial guidance for 2026 following its Q3 results.

It now expects loan growth to be in the low double digits, compared with its previous forecast of a high-single-digit to low-double-digit increase.

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Total income is expected to grow by at least a mid-single-digit percentage, with a flat to slight decline in net interest income. It previously guided for a slight decline in net interest income.

Meanwhile, credit costs should be in the range of 15 to 20 bps, compared with the previously guided 25 to 30 bps.

OCBC group CEO Tan Teck Long expects global conditions to remain uncertain amid geopolitical tensions and elevated inflation risks.

“Much of the near-term outlook will depend on the easing of energy prices brought about by the war in the Middle East, while the market conditions in Indonesia are also being closely monitored,” he said.

“Meanwhile, AI (artificial intelligence) and related technology sectors continue to register strong growth.”

Shares of OCBC closed 0.3 per cent or S$0.08 higher at S$27.93 on Thursday.